Which of the following statements is CORRECT?
A. Warrants have an option feature, but convertibles do not.
B. One important difference between warrants and convertibles is that convertibles bring in additional funds when they are converted, but exercising warrants does not bring in any additional funds.
C. The coupon rate on convertible debt is normally set below the coupon rate that would be set on otherwise similar straight debt, even though investing in convertibles is more risky than investing in straight debt.
D. The value of a warrant to buy a safe, stable stock should exceed the value of a warrant to buy a risky, volatile stock, other things held constant.
E. Warrants can sometimes be detached and traded separately from the security with which they were issued, but this is unusual.
Answer: C
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Wright Inc. issued 20,000 shares of $1 par value common stock for $80,000. The journal entry to record this issuance includes a:
A. Credit to Cash for $80,000. B. Credit to Common Stock for $80,000. C. Credit to Common Stock for $20,000. D. Debit to Additional Paid-In Capital for $60,000.
The team member in the role as leader organizes team meetings and creates the agenda.
Answer the following statement true (T) or false (F)
With short-term disability coverage, payments will continue to age 65
Indicate whether this statement is true or false.
_______ is the term used to describe certain fundamental principles of international law that cannot be altered by custom or practice.
A. Extraterritoriality B. Sovereign immunity C. Gharar D. Customary international law